Brisbane’s Tower Developments in Melt Down

The financial meltdown has dissolved over $4 billion worth of central Brisbane’s proposed developments. The only question is, is this an unmitigated bad thing?

Brisbane River

The Queensland government has cancelled the controversial Brookfield Multiplex’s $1.7 billion North Bank Project. Though it appears this project was the victim of planning rather financial reasons. The development which was dubbed “Brisbane’s Darling Harbour” - and not in a nice way, was never popular and the current financial crises is a very nice excuse. The development would have included a series of towers build along the under-developed north side of the Brisbane Rivers, some with up to 30 stories.

Brookfield has used the cancellation as the reason to wind down its Queensland operations and reduce its local staff.

Brookfield is not the only development to be an ex-development though.

According to The Australian newspaper:

Empire Square has been axed, while another huge CBD project, Vision, has been put on hold as confidence collapses and finance conditions become impossible to satisfy.

Empire Square and Vision were to be 70-story-plus towers, each mixed-use, incorporating residential, hotel and office space.

Meanwhile, questions hang over another super-tall mixed-use project — Trilogy. Market watchers say developer APH has put the project on hold for 12 months.”

Trilogy has been trying to sell off the building’s $300 million office component with no success.

Other developments likely to be on the “missing presumed” list include:

• Austcorp has “temporarily suspended” its pre-planning on the $1 billion Vision tower.
• Canberra developer APG is buying the site Metacap was planning its Empire Square tower.

Metacap axed its $600 million scheme three weeks ago. Purchaser contracts had been terminated and deposits returned to buyers.

At least with the loss of so many proposed office space will help the existing office leasing market increase values. Unfortunately the dire lack of CBD hotels rooms will not be alleviated anytime soon.

The Australian does have some good news though:

“Large-scale developments are still proceeding in Brisbane include Devine’s $1 billion French Quarter project on Albert, Alice and Margaret streets, GPT Group’s $630 million One One One Eagle St, which is under construction, and the Leighton-Grosvenor joint venture at 400 George St, which will include 43,529sqm of office space on completion next year.”

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